Lindi High Grade Graphite Mineral Resource Increase by 165%

Australia-based mineral exploration company Walkabout Resources (ASX:WKT) recently announced that the high grade resource at its Lindi Graphite Project in southeastern Tanzania increased by 165%.

The Lindi high grade mineral resource increased from 11.7m tons to 29.6m tons (+165%), containing 3.25m tons of graphite.

Andrew Cunningham, Technical Director of Walkabout Resources, commented: “The exceptional increase in the size of the mineral resource as well as the substantial amount of high grade material in the measured and indicated categories will provide an excellent technical platform for the development of the project. The visually distinct, super high grade zones from surface, strongly support the company’s belief that operating costs of the project will be amongst the lowest in the graphite space.”

In October 2016, Walkabout Resources announced that it will focus on expandable and battery markets following the first set of tests on the Lindi graphite conducted by an independent German laboratory, NGS Trading and Consulting.

Allan Mulligan, Managing Director of Walkabout Resources, said: “The premium flake graphite to be produced at Lindi Jumbo is highly suited to the manufacture of expandable graphite products and graphite foil. Quality feedstock for expandable graphite is in short supply in China at the moment and will need to be sourced internationally.”

“Prices for graphite foil are as high as USD50,000 per ton and these products will soon be competing with the rapidly expanding international battery market for premium graphite feedstock. Premium Tanzanian graphite will become the supply of first choice and we intend to be a premium supplier of it. We’re currently preparing further samples for dispatch to our potential customer base in China, North Asia, USA and Europe,” he added.

Walkabout is fast tracking the exploration and development of the Lindi Jumbo Project to take advantage of forecast market conditions for flake graphite deposits.

The company holds 70% of four licenses at Lindi Jumbo with an option to acquire the remaining 30% share (currently owned by joint venture partners).

Lindi Graphite Project

The Lindi Jumbo Graphite Project is located in the emerging graphite province in southeastern Tanzania approximately 75km to the west of the coastal town of Lindi.

In 2015, Walkabout entered into a Memorandum of Understanding (MoU) for a staged purchase of 70% of four prospecting licenses (PL’s 9992/2014, 9993/2014, 9994/2014 and 9906/2014) totaling 325km2.

Walkabout indicates that Lindi Jumbo is known to be endowed with exceptionally large flake size.

Preliminary reconnaissance work has revealed substantial outcropping graphite at the site and initial test work has returned an elevated ratio of large and jumbo flakes particular to the ore.